Lack of employee engagement is the precursor to resignation. Gallup’s 2024 global workplace survey of employee engagement reveals that only 23% are engaged, 62% are not engaged, and 15% are actively disengaged. Expressed another way, 77% of employees would prefer to be somewhere else.
Employee turnover is a costly and disruptive challenge for businesses. When a talented employee hands in their resignation, employers often attribute it to salary concerns or better opportunities elsewhere. While compensation plays a role, the reasons people leave their jobs are far more complex. Understanding these reasons is essential for business leaders who want to retain top talent and create a thriving workplace.
This post is a summary of the key findings of a research project I have been working on for several years. I provided the working notes of that project t0 NotebookLM AI tool which created the following 25 minute conversational “podcast”.
1. Bad Bosses Drive Good Employees Away
The saying “People don’t leave jobs; they leave managers” holds a lot of truth. A toxic or incompetent manager can create an unbearable work environment, making even the most engaged employees eager to leave. Whether it’s micromanagement, lack of communication, or failure to provide support or walk their talk, a bad boss is one of the leading causes of employee resignations particularly of highly talented people.
2. Poor Relationships with Colleagues
Workplaces are social environments, and the quality of relationships with colleagues impacts job satisfaction. If an employee feels excluded, experiences workplace hostility, or simply doesn’t connect with their team, they may seek a better cultural fit elsewhere.
3. Feeling Undervalued and Underpaid
While money isn’t the only factor in job satisfaction, feeling underpaid compared to industry standards or personal contributions can lead to resentment. Employees want fair compensation that reflects their value to the company.
4. Lack of Interesting and Meaningful Work
Employees thrive when they are given engaging projects that challenge them and provide a sense of meaningful (to them) purpose. If work becomes monotonous or uninspiring, top performers will quickly lose interest and look for roles that align with their ambitions and interests.
5. Insufficient Resources to Succeed
Frustration builds when employees lack the tools, budget, or support needed to do their jobs effectively. This includes the physical environment which includes temperature control, chair quality (if applicable), IT tools, lighting, and the general ambience of the work environment. If an organization fails to provide adequate resources, employees may become disengaged or overwhelmed not only because it will place a limit on their productivity but it also sends a message that they are not highly valued or supported.
6. Mismatched Skills and Responsibilities
Being assigned tasks without the proper training or expertise can cause stress and burnout. Employees want to feel competent in their roles, and if they are repeatedly asked to perform work they aren’t equipped to handle, they may feel set up for failure.
7. Unclear Career Growth Opportunities
Talented employees want to see a future in their company. If they don’t understand the career paths available or see no investment being made by their employer in their professional development, the best ones will explore opportunities where personal growth is valued and facilitated.
8. Lack of Pride in the Company or Team
People want to work for organizations they believe in. They may feel disconnected and unmotivated to stay if they don’t respect their company’s vision (what it believes in and seeks to deliver to its stakeholders), its mission (its governing commercial purpose), its reputation (how it actually behaves), and its ethical standards (its demonstrable values).
9. A Culture of Negativity and Criticism
A toxic work environment filled with excessive criticism, gossip, and lack of appreciation can drain morale. Employees want to be respected, have respect for their colleagues, feel valued and work in a positive, supportive atmosphere. Humans are social animals and (most) do their best work when they are part of a collaborative team focused on an aligned sense of purpose.
10. No Sense of Contribution or Impact
Employees are more likely to stay when they see their work making a meaningful difference. If they feel like just another cog in the machine, they will eventually seek more fulfilling roles elsewhere. This is particularly important if an employee is asked to put a lot of effort into a project which is subsequently ignored by management without comment or explanation.
11. Feeling Ignored and Unappreciated
Recognition is a powerful motivator. If an employee’s contributions go unnoticed or their feedback is consistently disregarded, they will feel unimportant and unmotivated to stay.
12. Workplace Humiliation or Toxic Treatment
Experiencing or witnessing public humiliation, bullying, or unfair treatment can make a workplace unbearable. Employees won’t tolerate environments where they feel disrespected or psychologically unsafe i.e. you are not welcome to share your thoughts and if you do you’re ignored, criticized, humiliated, cautioned, or marginalized. This is typical where management reflects a command and control philosophy.
13. A Lack of Work-Life Integration
Overwork and burnout are major reasons employees leave. If a company does not respect boundaries or expects employees to sacrifice personal time continuously, they will eventually choose their well-being over the job. This point also covers the work-from-home and other policies relation to supporting matters of personal and family importance.
14. Leadership’s Failure to Address Stakeholder Needs
Employees want to work for organizations that balance the needs of customers, employees, and the communities in which they work. Included here would also be they way the business treats it suppliers and even its competitors. If leadership decisions seem short-sighted or misaligned with ethical business practices, employees may question their long-term commitment to the company.
15. No Fun or Enjoyment at Work
A workplace that lacks camaraderie, humour, and positive experiences can feel like a prison. Employees don’t expect every day to be exciting, but they do want to enjoy at least some (perhaps most) aspects of their work environment.
16. Absence of a Clear Strategy and Disruptive Organizational Changes
The company does not have a clear strategy that is understood at both the enterprise level and consistently implemented at each business unit level. Constant restructuring, leadership turnover, or unclear company direction creates uncertainty. Employees want stability, and when a company frequently shifts priorities without clear communication, they are unlikely to be engaged and may leave for a more predictable environment.
17. A Company’s Resistance to Change
Ironically, while too much change can drive employees away, so can a refusal to evolve. If a company resists innovation, clings to outdated processes, or fails to adapt to market shifts, employees may feel stagnant and seek dynamic workplaces.
18. Ethical or Moral Conflicts
Employees may leave if they feel their company engages in unethical practices, misleads customers, or operates in ways that conflict with their personal values. Integrity matters, and when it’s compromised, employees lose trust in leadership.
19. Overpromising and Underdelivering
Employees join organizations based on promises about culture, advancement, and job expectations. If reality doesn’t match those promises, they will feel deceived and seek an employer who follows through on commitments.
20. The Desire for a Fresh Start
Sometimes, employees leave simply because they seek a new challenge, a change of scenery, or a different industry. Not all resignations are a result of dissatisfaction—sometimes, it’s just time for a new chapter.
Final Thoughts
Employees resign for a mix of personal and professional reasons, but most departures are preventable. Organizations that focus on strong leadership, fair compensation, positive workplace culture, and career development can significantly reduce turnover. You can’t force employees to stay but you can create an environment where they want to stay and, importantly, want to sign on for. This is an environment which creates “good” jobs.
A good job is one that has a meaningful purpose, it is one where your are fairly treated, is one that offers you a strong sense of future growth opportunities either in the business you’re currently working in or another one, and one that comes with psychological safety as defined by Amy Edmondson in her best selling book The Fearless Organization – an organizational environment in which candor is encouraged so that there can be “productive disagreement and a free exchange of ideas” without fear of retribution, dismissal, or humiliation.
One of the best ways to keep an eye on your employees’ feeling about their sense of engagement and likelihood of continuing to contribute to the business is to ask them to completer a Howzit Going Feedback Review at the end of each month or less frequently. I recommend that this not be mandatory but rather an opportunity for them to reflect on how they felt about their last month at work (or longer if they prefer) in terms of their contribution, their degree of engagement with colleagues, customers, what they learned, what they noticed, what they believe could be improved etc. Ideally I would ask them to provide it to their boss and, if necessary request an opportunity to discuss it) but it would be okay although less desirable for them simply to retain it for their own use. Click here if you would like a copy of the template I have used.